6 Views

Question : A principal of Rs. 10,000, after 2 years compounded annually, the rate of interest is 10% per annum during the first year and 12% per annum during the second year (in rupees) will amount to:

Option 1: Rs. 12,000

Option 2: Rs. 12,320

Option 3: Rs. 12,500

Option 4: Rs. 11,320


Team Careers360 23rd Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Rs. 12,320


Solution : Principal = Rs. 10,000
Rate at first year = 10%
Amount after 2 years= $P(1+\frac{R_1}{100})(1+\frac{R_2}{100})$ to solve this where $P$ is principal, $R_1$ and $R_2$ are the rates of interest per annum for two successive years.
$\therefore$ Amount after two years = $10000(1+\frac{10}{100})(1+\frac{12}{100})$ = 12,320
Hence, the correct answer is Rs. 12,320.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books